Transportation costs for shipping corn and soybeans from Minneapolis to Japan via the U.S. Gulf increased in the fourth quarter of 2024, while costs for the Pacific Northwest route decreased, according to a recent U.S. Department of Agriculture Grain Transportation Report.
For the Gulf route, transportation costs rose 1% quarter-to-quarter and 2% year-over-year, driven by a 23% increase in barge rates and a 1% increase in truck rates. The rise in barge rates was attributed to increased demand and navigation restrictions on the Mississippi River System due to low water levels.
In contrast, the Pacific Northwest route saw transportation costs fall 4% for corn and 3% for soybeans quarter-to-quarter, with decreases in both rail and ocean freight rates. Year-over-year, costs dropped 6% for both commodities.
Total landed costs for corn via the Gulf route increased 3% quarter-to-quarter but decreased 9% year-over-year. For soybeans, landed costs fell 4% quarter-to-quarter and 19% year-over-year. The Pacific Northwest route showed similar trends, with corn landed costs up 1% quarter-to-quarter but down 12% year-over-year, while soybean costs decreased 5% and 20%, respectively.
The report also noted that fourth-quarter corn inspections for export increased 31% from 2023, primarily due to increased demand from Asia and Latin America. Japan saw a 96% increase in corn inspections year-over-year.
USDA projections for the 2024/25 marketing year indicate a 7% increase in U.S. corn exports and an 8% increase in soybean exports compared to the previous year.
